Gore and Palmer team up on climate

Unlikely allies, former US Vice President Al Gore and Clive Palmer announce the PUP's stance on the carbon tax repeal bill.

He's one of our more colourful politicians, but how did he get there? And how will Clive Palmer's party vote on the contentious carbon tax repeal bill?

Clive Palmer arriving at the House of Representatives doors at Parliament House in Canberra. Source: News Corp Australia

AS FAR as victories go, this one is surely bittersweet.

Clive Palmer, flanked by former US vice president Al Gore, announced on Wednesday he would help the government achieve its key election promise by backing the repeal of the carbon tax.

But in return the Palmer United Party leader wants a legal guarantee that electricity savings will be passed onto consumers and an emissions trading scheme ready to go if needed.

It's a tough list of demands for the Abbott government to swallow, but for now it's claiming victory.

"What we have seen today is vindication," Environment Minister Greg Hunt told reporters in Canberra.

"The announcement this evening means that the Senate will be following the coalition's plan."

But things won't go to plan when it comes to their "direct action" climate change plan, which passed the House of Representatives on Wednesday but now looks set for defeat in the upper house.

Who would have thought Al Gore and Clive Palmer would be political buddies. AAPImage/Alan Porritt Source: Supplied

Mr Palmer blasted the $2.55 billion alternative scheme as a waste of money and said his three PUP senators - plus the Australian Motoring Enthusiast Party's Ricky Muir - won't back it.

It's hard to imagine how the government could support Mr Palmer's demands for an ETS, which they've repeatedly labelled a carbon tax with another name.

Under Mr Palmer's plan, an ETS would only become effective when Australia's main trading partners like China, the US and Japan implement similar schemes.

"This is designed to establish and encourage a fair global scheme quickly," Mr Palmer told reporters in Canberra, without elaborating on the details.

Mr Hunt said an ETS wasn't coalition policy, but Prime Minister Tony Abbott would be sitting down with Mr Palmer on Thursday to discuss his proposals.

He also said they could consider further steps to ensure consumers receive savings once the carbon tax is gone, even though there are safeguards in place to protect that anyway.

Despite all but killing off the carbon tax, environment groups and the Australian Greens quickly welcomed Mr Palmer's other surprise announcements.

PUP senators will not support the abolition of the Clean Energy Finance Corporation or the Climate Change Authority, or any changes to the renewable energy target before 2016.

The Clean Energy Council said Mr Palmer's support for the RET, the 20 per cent by 2020 target under review by the government, had delivered "a Titanic boost for the clean energy industry".

The Climate Institute's John Connor said more clarity was needed about Mr Palmer's ETS proposal, but at least Australia was no longer on track for a "climate policy wasteland".

Australian Greens leader Christine Milne cautiously welcomed the lifeline thrown to the climate agencies, but said she'd seek more detail from Mr Palmer.

"The whole country tonight will be shaking its head saying 'what does this actually mean?' and it would have been good to get some clarity," she told reporters in Canberra.

Labor leader Bill Shorten said the ball was now in the prime minister's court.

"He's the prime minister and it's his responsibility to tell Australians whether he intends on doing a deal with Clive Palmer," he said.

Independent senator Nick Xenophon, who also holds influential voting rights in the upper house, said he would support scrapping the carbon tax if there was an ETS framework in place.

WHAT CLIVE PALMER WILL SUPPORT

* The government's policy to repeal of the carbon tax

WHAT HE WANTS IN RETURN

* A guarantee that all energy producers are required by law to pass on the savings from the carbon tax to consumers.

* An emissions trading scheme, which will only take effect once Australia's main trading partners like the US, China and Japan establish similar mechanisms.

WHAT HE WON'T SUPPORT

* The government's $2.55 billion direct action plan on climate change ("A waste of money", Mr Palmer said).

* Any changes to the renewable energy target before 2016

* The abolition of the Climate Change Authority and Clean Energy Finance Corporation

SOURCE: Press release from Palmer United Party leader Clive Palmer.

EARLIER

Much of the reaction to the Palmer/Gore pair up has been incredulous.

Mr Palmer hinted this morning at a big announcement, promising that it would offer "hope to mankind".

"Wednesday night we'll have an announcement to make on what we think is a solution for Australia and the world," Mr Palmer told the ABC.

"It's going to be a very exciting time I think."

He says it will be a "big day — massive day".

"We'll be very clear about a number of things and offering hope for mankind," he said.

The PUP senators — Glenn Lazarus (Queensland), Jacqui Lambie (Tasmania) and Dio Wang (WA) — who have an arrangement with the Australian Motoring Enthusiast Party's Ricky Muir (Victoria) will hold key votes in the new Senate.

The government will need the support of six out of eight crossbenchers to get legislation passed.

Mr Palmer told 2GB Radio on Wednesday that he would spell out how the PUP will vote on the carbon and mining tax repeal bills as well as budget legislation, ahead of a meeting with Prime Minister Tony Abbott on Thursday.

Glenn Lazarus means business. Picture: Adam Armstrong Source: News Corp Australia

"We are all worried about fairness," Mr Palmer said.

"Australians regard fairness as being very important." Mr Palmer said one of the party's first actions would be for senator-elect Lazarus to move a motion setting up an inquiry into alleged corruption in Queensland Premier Campbell Newman's government.

"This is about cronyism," Mr Palmer said.

"What you've got is a whole different culture where the Liberal National Party are cronies." The inquiry could cover such issues as the appointment of the state's new chief justice and favouritism of LNP-linked companies in the awarding of government contracts.

Other issues to be pursued by PUP would be cutting back the national broadband network to an $8 billion project covering only rural and regional areas, a national gas reservation policy and encouraging superannuation funds to invest in infrastructure.

- with Charis Chang

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